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1/21/2008

Opportuntiy in a Bear Market

Wisdom from Benjamin Graham for a tough market

"It is our argument that a sufficiently low price can turn a security of mediocre quality into a sound investment opportunity - provided that the buyer is informed and experienced and that he practices adequate diversification. For, if the price is low enough to create a substantial margin of safety, the security thereby meets our criterion of investment."

Investors "must demand convincing evidence that he is not risking a substantial part of his principal"

“Obvious prospects for physical growth in a business do not translate into obvious profits for investors"

"I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities" Benjamin Graham

"Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed"